Malcon manufacturing company will establish a number of statistical measurements in order to establish and maintain its reputation of producing quality products and services, namely beverages. The statistical process control (SPC) system employed by the company makes use of techniques when measuring and analyzing every variation in the process of production. The intention of SPC is to monitor the process quality and maintain every process that has been fixed in the pathway of production. The company relays the fact that it has all the capacity to maintain a steady level of quality production within its serenity and capacity. Malcon adapts this mode of measurement because of the number of reasons. No matter the state of production, this measuring is subtle in maintaining a steady nature. Second, SPC is straightforward and easy to replicate within all the departments of production in the company. Though this statistical method will not improve every production design, it will help in developing its reliability for a continued production within Malcon (Bradley, 2007).
To facilitate SPC, Malcon makes use of control charts and graphical description of every production process within the company. Descriptive statistics offers statistical ways in which quantitative measurements are derived and done within the company. The descriptive statistics is shown in the control chart while being compared to their “in-control” sampling distributions. Any unusual variation is detected by comparison as manufacturing proceeds. In doing this, any problem is detected and equitable measures are taken to respond to it. Several control charts are designed to work on every manufacturing department within the company.
Another method of statistical measurement to measure the quality characteristics of Malcon Company is called Acceptance Sampling. This involves a random inspection of a number of sample products from the company so that a decision is arrived, whether to accept or reject the entire batch in consideration to the laid out levels of quality. This method is often carried out before and after the production process within the company. Before the production process, materials from suppliers are sampled as crates of fruits to manufacture of drinks, and assessed in order to ascertain their quality. After the production process, sampling is done on the finished products before being shipped or carried to the distribution centers. For instance, the company directors sample a number of drink bottles just to make sure that they are up to the operational requirements. Moreover, show boards are used to ensure that products are not defective before getting them to the consumers (Keller, 2011).
Within the control and quality assurance department, there are record keeping specialists who record and keep the records of every statistical inspection done by the company. Statistics is always conducted three times a week. This involves statistical collections on Mondays, Wednesdays and general statistical inspection is often done on Saturdays when no much work is expected. The records are later released to every department in order to get updated on them.
Key concepts related to the capacity planning and facility location for Malcon business
The impact of capacity management is often felt within Malcon Company. Every element of supply chain necessitates that an equitable capacity management parameter is established and utilized within every changing phase of the business. The production capacity is critical in ensuring that the company meets the peak demands of the business periods. This also applies to the distribution capacity, transportation and supply capacities. Within the beverage company, there are a number of aspects which face an extreme supply and demand challenges. The changes, which are often experienced, are a necessity in ensuring that the company’s resources are not strained as more production is anticipated. Some of the departmental capacities are as follows:
Malcon Company owns a number of facilities as buildings, the land on which the company has been located, and the humanitarian capacities as people are its professional hand owns. The managers within the company are set to always review these facilities in order to ascertain whether expansion of the company’s operations threatens to limit production. Increase of production of the current goods and services necessitates that the company expands on the number of facilities within. Moreover, the location, layout and age of the company are ascribed under the capacity of the planning department.
Every equipment within Malcon is poised at increasing production without affecting its future performance and productivity. Moreover, the company always ensures that equitable measures have been laid down in order to review equipment such as forklifts, computers and the transportation equipment. This is mainly intended at increasing their output without failing to produce in the days to come. The management ensures that it has established the workability of every equipment so that it has all the reasons to replace or purchase the new ones, in case of a need to increase production.
The company is to make use of temporary and permanent labors in a bid to increase production and respond to the fluctuating scales of production and consumption. The company ensures that it does not overpay its temporary employees as this might threaten its production in the years to come.
The company has established the formidable software, which is set to work in preference to the company’s potentialities and efficiency. The software is prone to extra add-ons, which are expected as the company progresses from one level of production to other.
Within Malcon Company, there are equitable measures, which were placed before the entire project was implemented. This touches on the location of the business with respect to the proximity of the suppliers and consumers.
Hybrid aggregate plan to maintain a competitive advantage within Malcon manufacturing company
Malcon has sought to plan its manufacturing operations at different levels and incorporate them as a single system. The aggregate plan laid out at Malcon takes a span of 18 months. The main aim of this plan is to enable the company to work on a given production plan designed to maximize on production with less resources available. It seeks to have control on the supply and demand of the company.
Characteristics of the aggregate plan
The formulated aggregate plan exemplifies the following characteristics:
- A time span of 12 months with updates laid monthly
- A fluctuating demand level with one or few categories
- Variables emanating from possible change in demand and supply
- A number of management objectives as low inventories, low costs, low labor, good customer service and flexibility to increase future levels of output
Malcon relinquishes a number of strategies which are the pillar of the aggregate plans. They include a match demand period by period, the use of a number of decision variables, maintenance of a steady output rate and maintenance of a level workforce.
Malcon uses a number of aggregate planning techniques. They are as follows:
- Informal technique
Involves the use of accessible tables and graphs by planners to make comparisons of various projected demands. In doing this, the company will be able to develop basis for establishing alternative plans to attain every goal.
- Mathematical techniques
Aggregate planning is subjected to mathematical techniques, which are designed to bolster its usefulness and efficiency in the company.
- Linear programming and extension
Within Malcon production, the setting of the production rates together with the workforce sizes is viewed as a linear programming problem.
The hybrid aggregate plan is useful in maintaining a competitive advantage between the company and its reputable rivals in the market. The statistical remunerations are subtle in bringing out the future positive aspect of the company. The aggregate plan is useful in making sure that all the company operations are carried out with the main goal of benefiting the company’s productivity and existence in a competitive beverage market.
Work system design of Malcon Company
Every activity within Malcon has been depicted in the work design structure. The system describes how the organization’s activities are coordinated and executed. Malcon employs a thirty day program where all activities are timed and executed under reputable guidance from the departmental leaders. The company has a number of processes and activities which run all day and night long. The participants are mainly the workers who work within and outside the organization. Codified and non-codified information is made use of. Moreover, there are a number of technological undertakings, which make work easier at the company.
Inventory management of Malcon Company
Malcon has equitable inventory management system which serves to determine strength of the supply chain together with the impacts offered by financial health within the balance sheet. The core goal of Malcon is to maintain an optimum inventory in order to meet the company’s requirements and avoid underuse or overuse, which can negatively impact on the overall financial figures of the company. Equitable and constant evaluation of the internal and external factors together with control, are made by the use of planning and review activities. As ascribed in the general life cycle, Malcon plans to exist and offer competent products and services for a maximum time as long as customers will be available. It is a life time undertaking (Saxena, 2009).
In order to maximize on its production and efficiency, Malcon Company exemplifies a number of figurative and statistical approaches.